IRS Tax Problems

Accountants Weigh In on Some of Their Most Successful Outcomes When Helping Clients With Tax-Related Issues

by
Lee Reams II
on
7/23/2018
Accountants Weigh In on Some of Their Most Successful Outcomes When Helping Clients With Tax-Related Issues

When you're dealing with a tax code that is currently made up of 10.1 million words(!), you're talking about a complex situation that is certainly going to cause a lot of stress — and problems — for people all over the country. According to the experts at The Motley Fool, people are 41 times more likely to find an error on a paper return versus one that has been e-filed. But in an era where there were nearly 5,000 different tax code changes between 2001 and 2012, it's clear that this is a problem that is only going to get worse before it gets better.

At the same time, all hope is not lost. Even when clients come to them with precarious tax situations, financial professionals are still able to deliver satisfying outcomes more often than not. We recently asked a number of our own experts to weigh in on some of the most successful outcomes they've been able to achieve when helping clients with tax-related issues. Here's what they had to say.

Tax Problems and Potential Resolutions: Our Experts Break Things Down

For most financial professionals, a lot of the most successful outcomes they've been able to secure on behalf of clients all seem to be born out of the same basic place: the mistakes of the past. Indeed, a lot of people — both in terms of their personal and their professional taxes — seem to run into problems when trying to do things on their own. Only when they finally enlist the help of a trained, passionate professional are they finally able to get things on the straight and narrow, so to speak.

Kim Justice of CPA by the Bay said that she had one client who "came in with a notice from the IRS owing $80,000. After having us prepare their return in the right way, and after we spent a lot of time trying to maximize deductions, they actually left getting a refund."

Tyrone J. Taylor of Taylor Tax and Financial Consulting, Inc. has had similar experiences all throughout his career. "I was able to help a client who was being audited by the IRS. The IRS was claiming that they owed additional taxes. Not only was I able to prove they didn't owe what was being said, I was also able to get them a $2,000 tax refund by showing that they had understated their tax withholdings in the first place."

In Tyrone Taylor's situation, this was a clear-cut case of a client misunderstanding how complicated their taxes can be — and potentially being asked to pay dearly for it. "They were being taxed in Mexico," he continued, "which means they were supposed to receive a foreign tax credit that was missed by both the client AND the IRS."

But for most tax professionals, the biggest outcome they're able to guarantee on behalf of clients everywhere — and perhaps the single biggest benefit that they're able to bring to the table — comes by way of good, old-fashioned peace of mind.

Judy Coker EA, CAA said that she loves the fact that her clients can "sleep well at night and can open the mailbox without stomach-clenching. It is very rewarding to visit with clients each year to check up on how they're progressing through smart money management and saving for their dreams. I love that there is no more worrying about having to pay penalties and interest that compounds the pain of taxes due."

Ahlberg K. Auna of AxTax, Inc. agreed with those sentiments, saying that "among the many cases that we've resolved over the years, we were especially successful with an offer settlement via the Effective Tax Administration option for a client. The client had the equity, but not the ability to pay in full based upon her health and home condition circumstances. The OIC examiner countered our lower offer and proposed $5,000 to settle her $85,000 tax debt."

With a smile on his face, Auna finished by saying, "Our client was thrilled. Gone was the tax debt. Her health isn't doing well, but now she has peace of mind."

Terry O'Neil, an Enrolled Agent based in Round Hill, VA, had a business client who unknowingly had an employee who did not submit the 2011 payroll information with the Social Security Administration. They were subsequently hit with a $75,000 civil penalty. Yes quite steep. As you can imagine the client was very stressed and upset. The business owner found the IRS notices in the employee's desk drawer. Terry shared “once I had this information I was able to request penalty relief through Reasonable Cause. Fortunately, I won the case, and every cent was returned. This was far from my highest monetary win, but has been my most satisfying to date, as this man had been through a series of recent devastating personal and financial crises beyond his control. I was very happy to help him get his life back on track.”

If you needed another reason to work with an IRS tax problems professional on your personal or business taxes, let it be that one. 

Lee Reams II, writes for TaxBuzz, a tax news and advice website. Reach him at [email protected] or on LinkedIn.  

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Lee Reams II

Lee Reams II

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I am a tax and business news junkie who has spent the last 20 years developing and executing "best in class" word-of-mouth marketing campaigns for tax and accounting professionals. With TaxBuzz and CountingWorks we have taken that same commitment to quality content directly to the consumer. Keeping you up-to-date with the latest tax law changes, business growth tips and planning strategies to help you reach your best financial outcome.

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